Boğaziçi University AD 311 Course Outline

Department of Management Fall 2023

FINANCIAL MANAGEMENT
Instructor: Neslihan Yılmaz TA: Ömer Eren (omer.eren@boun.edu.tr)
Class hours: Tuesday 10:00 - 13:00, IB201
Office Hours: Tuesday 13:00-15:00, IB305
E-mail: neslihan.yilmaz@boun.edu.tr
Prerequisite: AD 211 or AD 213 or AD 216

Course Description:
AD311 is an introductory course in finance. The course is designed to familiarize students with the
basic notions of financial management. Most parts of the course are analytical and decision making
oriented. Computer based applications are required.

Course Objectives:
 Articulate the primary goal in a publicly traded firm, and explain how agency problems relate to
that.
 Identify the concept of efficient markets and the roles played by financial markets in financial
management.
 Use the concepts of time value of money, risk, return, diversification, and cost of capital in
financial decision making.
 Apply basic financial techniques to value real and financial assets.

Textbook:
"Principles of Corporate Finance" by Brealey, Myers, Allen, and Edmans, McGraw-Hill (2023), 14th
ed.

Course requirements:
 Preparing for class prior to the sessions by going over the material.
 You should participate in the class discussions. Attending the classes only does not guarantee that
you to get full points for class participation.
 You should arrive the class no later than the first 10 minutes of class time.

Grading: Midterm 25%

Final-cumulative 40%
Ratio assignment 15%
In-class assignments 10%
Class performance 10%

Important Notes:
 You should read the book and solve the questions at the end of each chapter to get a good grasp of
the course.
 There will be only one cumulative make-up exam, which will be given after the last day of classes.
If you miss the midterm or the final and have a valid excuse, you may take the make-up exam. If
you miss both of the exams for any reason you will get zero for one of them.

TENTATIVE COURSE SCHEDULE:

Week Chapter Topic
1 1 Introduction to Corporate Finance
 19* Agency Problems and Corporate Governance
2 29 Financial Analysis
2 How to Calculate Present Values
3 13* An Overview of Corporate Financing
3 Valuing Bonds
4,5 14* How Corporations Issue Securities
15* Payout Policy
4 Valuing Stocks
6 7 Introduction to Risk, Diversification and Portfolio Selection
7 Midterm (November 14)
8,9 8 The Capital Asset Pricing Model
12* Efficient Markets and Behavioral Finance
10 9 Risk and the Cost of Capital
11 5 Net Present Value and Other Investment Criteria
12 6 Making Investment Decisions with the Net Present Value Rule
13 10 Project Analysis
Final Exam
* Readings from the textbook